The e-commerce galaxy

On the Avenue de la Grande Armée, one of the wide roads leading up to the Arc de Triomphe in Paris, the building where the Pixmania group has set up base somewhat resembles an eight-storey ant hive, with two storeys of open office space, hosting 650 of the group’s 1,300 employees. Their average age: 28 years. 50% of them come from overseas. Youth, a European vision, dynamism: these are part of the winning formula of Pixmania. “This atmosphere helps us to preserve a start-up spirit,” comments Katja Felke, Manager of Pixmania-PRO.com, the web site aimed specifically at professionals.
In 2000, the French group had not yet grown quite so big. The Rosenblum brothers, Steve and Jean-Émile, had just taken over the family company Fotovista, founded in 1970. They decided to create Pixmania.com, a web site dedicated to services for developing digital photos. The brothers enlarged their offer with the sale of digital cameras and quickly geared themselves towards e-commerce. In 2002, the group’s first European web sites were launched in Germany, Spain, Great Britain and Italy, offering products in the Photo, Sound & Image and IT categories. Launches have followed one after another, notably with myPix.com for online photo development in 2002, and the Pixmania-PRO.com in 2004. The group has been developing its service-provider sector since 2005, with an e-merchant activity allowing Pixmania to bring all its e-commerce expertise to outside clients. In 2006, DSG International, a distributor of electronic products, became a major shareholder of the group. “This has allowed us to strengthen our competitive potential,” underlines Katja Felke.
Staying competitive is important, but it is not the be all and end all. Pixmania is aiming the leader. Present in 26 countries (23 for Pixmania-PRO), the group counts no less than 25 million single visitors per month on its web sites and 6 million clients. At the end of April 2009, its turnover reached 772 million euros. The strength of this company lies above all in its innovation policy.  Even if the company achieves 35% of its turnover in France, Great Britain, Italy and Spain represent very good clients. Pixmania is also paying careful attention to emerging markets such as those in Eastern European countries. As far as its offers go, it has also been necessary for the group to take into account the effects of the crisis. At the end of 2007, the PixPlace market place opened and thus allowed the widening of the product catalogue. Now, every company with an intra-EC VAT number, capable of taking care of product delivery and managing client service, can sell its goods in Europe via the Pixmania-PRO.com web site. The services of the PixPlace interface are many. To ensure its sound functioning, the group also has another advantage up its sleeve: its stock. “We have very large volumes,” explains Katja Felke. “And to ensure deliveries within 24 hours at competitive prices, we have developed agreements with transporters.” Stock is kept in a fully automated warehouse stretching out over 35,000 m2 in the Île-de-France region.
On the strength of its B-to-C experience, the group, via Pixmania-PRO, has taken an interest, in the past five years, in the professional market (VSEs, SMEs and freelancers). The web site aims to provide a comprehensive offer for IT, office and electronic equipment, at the lowest possible prices. Over 45,000 references are available in stock, and Pixmania-PRO has over 250,000 clients in Europe. Several services are available (management of user rights, order follow-up, online quotes or express delivery in 24/48 hours in 23 European countries). The web site sets itself up as an intermediary between manufacturers and retailers, thanks to drop shipment. To inform clients regularly on products and services, a blog, www.grossiste-fournisseur.fr, has even been launched. “Operating in full growth, Pixmania-PRO is not experiencing any crisis,” announces Katja Felke. A good basis for the web site aspiring to become a leader in inter-business electronic commerce.